eBay is expanding its push into younger shoppers by agreeing to buy secondhand fashion marketplace Depop from Etsy for about $1.2 billion in cash. The move comes as demand for used clothing continues to grow, driven by consumers looking for affordable, unique items and more sustainable shopping options. eBay CEO Jamie Iannone said the acquisition will help the company attract more Gen Z customers and position Depop for long-term growth by leveraging eBay’s scale and operational strengths. As of December 31, 2025, Depop had 7 million active buyers — nearly 90% under age 34 — and more than 3 million active sellers. The deal comes five years after Etsy bought Depop for $1.6 billion. The app was founded in 2011.
EBay, based in San Jose, California, said it intends to pay cash. Etsy, based in Brooklyn, New York, plans to utilize the proceeds for general corporate purposes, continued share repurchases and investment in its core marketplace, according to the release. The deal, unanimously approved by both eBay’s and Etsy’s boards, is expected to close in the second quarter. Depop will continue operating under its existing name, brand, platform, and culture. Following the announcement, eBay’s shares rose more than 7%, while Etsy’s stock jumped nearly 15% in after-hours trading.
